Commitments and Contingencies
|3 Months Ended|
Mar. 31, 2016
|Commitments and Contingencies [Abstract]|
|Commitments and Contingencies||
Note 5 – Commitments and Contingencies
During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines than an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. Certain insurance policies held by the Company may reduce the cash outflows with respect to an adverse outcome of certain of these litigation matters.
Landfill Related Environmental Remediation
The Company currently operates a fully licensed landfill under approval by the Florida Department of Environmental Protection. As such the company has set up a reserve allowance of $424,596 against estimated future closing cost. As of December 31, 2013 the Florida Department of Environmental Protection has approved the secured letter of credit cash reserve of $324,950 set aside by the Company at March 31, 2016 and December 31, 2015, respectively, in order to be in compliance with the financial assurance requirements for long term care cost of the facility. It is reasonably possible that the recorded estimate of the obligation may change in the near term.
Concentrations of Revenues and Receivables
As discussed in note 8, Related Party Transactions, during the three months ended March 31, 2016 and 2015, approximately 12% and 34% of the Company’s revenues were generated from a related party, respectively and approximately 19% and 16% of net accounts receivable were due from related parties as of March 31, 2016 and 2015, respectively.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef